Educational Resources

27 Dec

Simple Ways to Save for an Emergency Fund

Life is full of unexpected surprises. Though there are plenty of good and great surprises, the bad surprises are often the costly ones we have to prepare for. While we can’t anticipate or prepare for every eventuality, we can do our due diligence and save for an emergency fund.

An emergency fund is money set aside for those costly unexpected surprises and can be used in case you suddenly lose your job, wreck your car, get injured or have weather damage to your home.

These incidents can happen at any moment. An emergency fund makes life a little easier when life throws you a curveball.

Ways to Save for an Emergency Fund

There are many ways to start an emergency fund, but the first step is to start small. You don’t need to start a fund with hundreds of dollars. You can start one with any amount and let it accumulate over time.

No matter how much you start with, make sure you keep it separate from the rest of your money. Set up a separate account from your checking account, but make sure the money is still easily accessible.

It might be hard to find the extra money, but the best way is to cut back on any unnecessary expenses. Make coffee at home, pack your lunch and unsubscribe from paid subscriptions you don’t use!

A health savings account is another type of account that can help with health-related surprises. It’s money you allocate each month from your income in the event of emergency medical expenses.

Having either of these two accounts can make your life a lot easier. So no matter what life throws at you, be ready with an emergency fund or health savings account with Signet Federal Credit Union.